Beijing, China

EV maker Zeekr saw its shares rise almost 35% above its initial public offering (IPO) price in the US, proving to be a strong start for the electric-vehicle maker. This is notably the first major US market debut by a Chinese company since 2021. As it successfully completed its US flotation, Zeekr aims to stand out among a swarm of Chinese EV makers competing for a larger share of the European market.

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Thanks to the successful debut, Zeekr got a fully diluted valuation of USD 6.8 billion, or about half the USD 13 billion it fetched after a funding round last year. But ironically, its first day of trading happened when US President Joe Biden's administration planned on boosting tariffs on Chinese vehicle imports to the country.

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Zeekr is the premium brand of Chinese automaker Geely, which also owns Sweden's Volvo Cars and the UK's Lotus. The EV maker was formed in 2021 in order to tap into the growing demand for premium models in China. Since then, the brand has delivered nearly 200,000 cars, mostly in China, according to its IPO filing. Zeekr's CEO Conghui An, who is also the president of its parent company, told Reuters, "The capital markets in New York are very favorable for new energy vehicles. Zeekr is a global brand, and choosing to list in New York further demonstrates its global capabilities."

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Zeekr has been eyeing expansion in other markets as fierce competition in China among domestic rivals and with Tesla has eroded its profits. All major Chinese automakers like BYD, SAIC and Great Wall Motor have been targeting Europe. They've been rolling out new electric models on the European turf with an aim to compete with the native legacy automakers. Thus, Chinese EV sales in Europe have soared in recent years.

Zeekr aims to become the Volkswagen Group of this era of new energy vehicles, said An, comparing the company to Europe's top automaker. The brand is more focused on the premium segment of the market. 

(with inputs from Reuters)